July 9, 2025
Renegotiating contracts with suppliers and vendors and seeking domestic suppliers to cut reliance on imports could help lessen the impact of tariffs.
Black business owners face economic snags that are more severe than their non-diverse peers.
Some 52% of them report that they were already experiencing declining sales due to tariffs as of June 2025, according to Chuck Casto, head of research and news at Alignable. He indicated that it is eight percentage points above the national average for all small businesses last month. And the June rate was 19 percentage points higher for Black owners than in May 2025.
Alignable, which calls itself North America’s largest small business networking platform, polled more than 4,000 small business owners, with 196 responses from Black business owners. Two Harvard Business School researchers and an MIT economist contributed to the report.
Among the industries hit the hardest by the tariff fallout: restaurants, retail, and manufacturing, many of which are led or owned by Black entrepreneurs.
Simultaneously, President Donald Trump just announced new tariffs up to 40% for several countries. Generally, tariffs can hurt small businesses in many ways. For instance, they can boost the costs of imported goods that the firms depend on, reduce profits, and weaken their global competitiveness.
“Using the threat of tariffs as a short-term negotiation ploy is triggering real, long-term damage across our economy,” Alignable CEO and co-founder Eric Groves said. “It’s not just a few industries or importers. The uncertainty is cascading through supply chains, eroding margins, and eroding confidence. Small business owners are caught in the crossfire.”
Additionally, one in five entrepreneurs fear that their firms won’t make it to 2026 if the tariff trend lingers or intensifies.
Even so, Casto told BLACK ENTERPRISE via email that all respondents were asked about how much their networking has helped open doors for them. Those interactions include helping them find new customers, referral partners, or new suppliers.
He says that 53% of all survey respondents reported that ramping up their networking and other pivots—such as concentrating on retaining customers and cutting costs—has helped them, to some extent, fight back against the negative effects of tariffs.
As for Black business owners, 45% of them declared that networking and other pivots are helping them repel the effects of tariffs, Casto says. “Though it’s lower than the national average for June, it’s still a very encouraging number, showing just how resilient Black owners of small businesses are right now, with the current tariff situation.”
In examining the percentage of owners who fear closure in 2025 if trade policies don’t improve, Casto says there’s a slight silver lining: Only 8% of them fear that. That’s much lower than the national average of 20% who worry about shuttering before year’s end. Casto says the difference is another testament to the resilience of Black business owners amid the challenges.
Additionally, there are multiple actions that small businesses can take to help mitigate tariffs, reduce costs, and minimize revenue loss. Based on BE research, the actions could include:
- Renegotiate contracts with vendors and suppliers to discuss the pricing of goods and ask if any adjustments can be made, if needed, to offset those costs.
- Explore opportunities to invest in supply chain technology to enhance efficiency and reduce operational expenses.
- Work with consultants specializing in supply chain international trade matters. They can potentially help on several fronts, including determining your exposure to tariffs, developing alternative sourcing and logistics strategies, and reducing customs penalties.
- If tariff pricing adjustments are necessary, consider applying them gradually, if possible, rather than implementing them all at once. Be sure to clearly inform customers about the changes and be transparent about why they are necessary to help sustain their trust and loyalty.
- Examine diversifying your supply chains by identifying alternative suppliers in countries with lower tariffs. Additionally, consider seeking local or other domestic suppliers to reduce dependency on imports.
- Implement AI to receive recommendations on how much you can potentially increase prices without losing customers. For example, AI could possibly help you determine various pricing strategies that best suit your circumstances.
- Consider utilizing AI to identify new sources for raw materials and other essential supplies. Also, be open to exploring new markets and expanding digital reach.
- Analyze where you can trim overhead costs tied to tariff-related costs and maintain sufficient cash reserves to offset unexpected or sudden cost increases.
- Conduct research to determine if your products or business may qualify for tariff exclusions or abatements.
- Research whether trade groups or other organizations offer information on tariff-free markets.
RELATED CONTENT: Elevating Your Excellence: Fawn Weaver’s Entrepreneurial Vision Forges A Legacy Beyond Whiskey
